Earnings

Indian Overseas Bank shares gain 6% on strong Q1 earnings

Updated : August 21, 2020 11:42 AM IST

The stock rallied 6.82 percent to an intraday high of Rs 12.21 on the BSE.

The share price of Indian Overseas Bank rallied over 6 percent in the early trade on Friday after the bank reported a net profit of Rs 120.69 crore in the first quarter of fiscal 2021 as against a loss of Rs 342.08 crore in the year-ago period.

The stock rallied 6.82 percent to an intraday high of Rs 12.21 on the BSE. It, however, pared gains, and was trading 2.63 percent higher at Rs 11.70 per share, at 11:35 am.

The bank’s net interest income (NII) in Q1FY21 rose 9.6 percent to Rs 1,412.32 crore from Rs 1,288.46 crore, YoY.

Asset quality during the quarter improved as Gross Non-Performing Assets (NPA) fell 8.1 percent to Rs 18,290.84 crore from Rs 19,912.70 crore while net NPA declined 7.9 percent to Rs 6,080.89 crore from Rs 6,602.80 crore, QoQ.

Gross NPA as a percentage of gross advances fell by 106 bps to 13.90 percent from 14.78 percent and net NPA as a percentage of net advances decreased by 34 bps to 5.10 percent from 5.44 percent, sequentially.

Provisions & Contingencies for the quarter ended June 2020 stood at Rs 970 crore as against Rs 1,170.24 crore for the quarter ended June 2019. Provision Coverage Ratio improved to 87.97 percent versus 72.24 percent, YoY.

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